Morning News Call - India, February 6

Reuters Staff

6 Min Read

To access the newsletter, click on the link:
here
If you would like to receive this newsletter via email, please register at: here
FACTORS TO WATCH
9:30 am: Junior Finance Minister Shiv Pratap Shukla and Central Board of
Direct Taxes Chairman Sushil Chandra at ASSOCHAM’s post-budget seminar in New
Delhi.
9:45 am: Finance Secretary Hasmukh Adhia and other government officials at
post-budget interaction with PHD Chamber members in New Delhi.
11:30 am: Transport Minister Nitin Gadkari at ‘Road Safety’ promotion event
in New Delhi.xx
LIVECHAT-FX MONTH AHEAD
John Noonan, Head of IFR FX Watch Asia, analyses cues and views for
market moves for the month ahead at 0930 IST. To join the conversation, click on
the link: here
INDIA TOP NEWS
•India to bar cryptocurrencies from its payments system -FinMin official
India is planning steps to ensure cryptocurrencies are illegal within its
payments system, while at the same time appointing a regulator to oversee
unregulated exchanges that trade in "crypto assets," a finance ministry official
said on Monday.
•Tata Motors quarterly profit surges on Jaguar Land Rover sales
Tata Motors reported on Monday a surge in quarterly profit, driven by higher
sales at its Jaguar Land Rover business after an exceptionally weak quarter a
year earlier.
•JSW Steel, Tata Steel among suitors for Bhushan Steel - sources
Steelmakers JSW Steel and Tata Steel have bid for Bhushan Steel & Power
which is being pursued by creditors in bankruptcy court, three people familiar
with the bidding process said on Monday.
•Stronger orders drive India's Jan services growth to 3-month high-PMI
Activity in India's services sector grew at the fastest pace in three months
in January, underpinned by a recovery in new orders that prompted companies to
sharply increase hiring, a private survey showed on Monday.
•Thyssenkrupp steel workers back labour plan ahead of Tata deal
Steel workers at Germany's Thyssenkrupp voted on Monday in favour of a
labour agreement that will safeguard jobs and plants in a planned joint venture
with Tata Steel until 2026, removing another key hurdle for the
tie-up.
•Shares in India's Airtel jump after Singtel lifts stake
Shares of India's biggest mobile carrier Bharti Airtel gained on Monday
after Singapore Telecommunications said it was slightly increasing its stake in
the holding company to nearly 50 percent.
GLOBAL TOP NEWS
•U.S. Congress grapples with immigration, averting funding fight
Legislation to help young "Dreamer" immigrants struggled to gain footing in
the U.S. Congress on Monday, but there were no signs yet that failure to pass
such a bill would trigger a rerun of January's three-day partial government
shutdown.
•Broadcom unveils $121 billion 'best and final' offer for Qualcomm
Broadcom made a $121 billion "best and final offer" on Monday to acquire
Qualcomm Inc ratcheting up pressure on its U.S. semiconductor peer to engage in
talks on what would be the biggest ever technology acquisition.
•Bayer offers to sell businesses to win EU approval for Monsanto deal
Bayer has offered to sell seeds and pesticides businesses to try to address
EU competition concerns over its $63.5 billion bid for U.S. rival Monsanto.
LOCAL MARKETS OUTLOOK
(As reported by NewsRise)
•The SGX Nifty Futures were trading at 10,335.50, trading down 3.31 percent
from its previous close.
•The Indian rupee will likely fall against the dollar in early trade, in
line with Asian peers, as demand for the greenback surged on poor risk appetite
amid another global equity rout.
•Indian sovereign bonds are likely to edge higher in early trade, tracking a
fall in U.S. Treasury yields as well as easing crude oil prices. The yield on
the 7.17 percent bond maturing in 2028 is likely to trade in a 7.56 percent-7.62
percent band today.
GLOBAL MARKETS
• U.S. stocks plunged in highly volatile trading on Monday, with both the
S&P 500 and Dow Industrials indices slumping more than 4.0 percent, as the Dow
notched its biggest intraday decline in history with a nearly 1,600-point drop
and Wall Street erased its gains for the year.
• Asian shares fell sharply after Wall Street suffered its biggest decline
since 2011 as investors' faith in factors underpinning a bull run in markets
began to crumble.
• The dollar stood tall as a rout in global equities prompted anxious
investors to seek shelter in the relative safety of the greenback, with peers
like the euro on the defensive.
• U.S. Treasury yields fell from four-year highs on Monday after a rapid
selloff in equity markets sparked demand for the low risk debt.
• Oil prices fell by more than 1 percent, extending falls from the previous
session, as global financial markets headed south in the wake of Wall Street's
biggest one-day decline since 2011.
• Gold prices held steady, buoyed by a tumble in global equity markets but
pressured by expectations for more U.S. interest rate hikes this year.
CLOSE FII INVESTMENTS EQUITIES DEBT
PNDF spot 64.09/64.12 February 5 -$196.94 mln $334.22 mln
10-yr bond yield 7.70 pct Month-to-date $384.58 mln $628.61 mln
Year-to-date $2.42 bln $2.09 bln
For additional data:
India govt bond market volumes
Stock market reports
Non-deliverable forwards data
Corporate debt stories [IN CORPD]
Local market closing/intraday levels [IN SNAPSHOT]
Monthly inflows [INFLOWS RTRS TABLE IN]
($1 = 64.1300 Indian rupees)
(Compiled by Yoganand KN in Bengaluru)